ABU DHABI // Companies are employing UAE nationals only to meet Emiratisation targets without requiring them to come to work, the FNC was told on Wednesday.
Ali Al Nuaimi, FNC member for Ajman, said the practice was rife at insurance companies. “We hope the Insurance Authority knows about it and has the appropriate methods to deal with it. Emiratisation is not mission impossible,” he said.
Mr Al Nuaimi said some companies employed UAE nationals in low-level posts, then put pressure on them to leave when the company reached its Emiratisation target. “Managers of some nationalities discriminate against Emiratis and recruit employees of their own nationality,” he said.
Sultan bin Saeed Al Mansoori, Minister of Economy and chief executive of the Insurance Authority, said there were 60 insurance companies in the UAE, of which 34 were UAE based and 26 foreign, employing 8,790 people. Only 768 staff were Emirati.
The number of Emiratis companies must employ was increased from 5 per cent in 2012 to 9 per cent in 2013.
Mr Al Mansoori told the FNC there was a “clear plan” to reach 11 per cent Emiratisation in the insurance sector by the end of the year and to increase that figure to 15 per cent in 2015.
“I agree there is a great challenge with Emiritisation but the goal is not only to increase numbers but also the quality.”
He said the authority was taking steps to train UAE nationals for leadership roles in the industry, with 63 Emiratis set to finish the Chartered Insurance Institute programme at the Insurance Law Institute in London.
Mr Al Nuaimi suggested to the minister that an award scheme should be launched for the chief executive who achieved the highest rate of Emiritisation in the insurance sector.
“Your suggestions are always good and we accept them, so please raise a recommendation for them and we will give it to the Cabinet,” said Mr Al Mansoori.
Ahmad Al Shamsi, also a member for Ajman, and the FNC speaker Mohammed Al Murr urged the Ministry of Economy to take measures to protect the rights of investors after Mr Al Shamsi raised a question about “changes and surprises” in the price of stocks at a number of companies.
Mr Al Mansoori, who is also chief executive of the Securities and Commodities Authority, said there would be penalties for proven offences and the market was monitored.
The minister said 98 per cent of companies adhered to the law, with 34 fined and 80 issued warnings. Fines for one company reached Dh1.3 million, four companies and six investors were suspended and three offenders were referred to public prosecution.
The FNC also amended a law governing the role of auditors, removing an article members said could hinder opportunities for local companies.
Mr Al Mansoori agreed the existing law could affect local auditors because it favoured international companies.
At present auditing firms are required to have a minimum 25 per cent partnership with a UAE national. Members debated changing this to 51 per cent but decided against.
hdajani@thenational.ae
